A multi-dimensional approach to happiness and innovation

ABSTRACT

In this paper, we start to address the lack of research into the relationship between innovation and subjective wellbeing (SWB). We focus on four channels by which innovation may influence SWB, namely income, use of ICT technologies, inequality and unemployment, synthesizing them into a conceptual framework. This framework constitutes the foundation for our theoretical model and empirical investigation of the relationship between innovation and SWB. As previous literature shows, the impact of innovation on SWB through these four channels is mostly negative. Analysis of panel data from eight European countries over the period 1980–201$ on the effects of technological innovation, measured in terms of patents, on population wellbeing confirms the negative impact of innovation on SWB. The analysis has policy implications, because it provides improved estimates of the contribution of innovation to collective wellbeing.

KEYWORDS:

• Subjective wellbeing
• technological innovation
• patents
• panel estimation

JEL CLASSIFICATION:

• C22
• D60
• D31
• O31
• O34

Disclosure statement

No potential conflict of interest was reported by the authors.